Show the graph of the 3/3

• The horizontal axis (x-axis) represents the Number of Bottles Produced and Sold.
• The vertical axis (y-axis) represents Total Cost/Revenue (₦).

• This is a straight line.
• Y-intercept (Fixed Cost): When $x=0$, $C(0) = 10,000$. Plot the point $(0, 10,000)$.
• Cost at Maximum Annual Capacity: When $x=600,000$, $C(600,000) = 10,000 + 0.03 \times 600,000 = 28,000$. Plot the point $(600,000, 28,000)$.
• Draw a straight line connecting these two points.

• This is also a straight line.
• Origin: When $x=0$, $R(0) = 0$. Plot the point $(0, 0)$.
• Revenue at Maximum Annual Capacity: When $x=600,000$, $R(600,000) = 0.46 \times 600,000 = 276,000$. Plot the point $(600,000, 276,000)$.
• Draw a straight line connecting these two points.

• The break-even point is where the Cost line and the Revenue line intersect.
• From the previous calculation, the break-even point is approximately $(\text{23,256 bottles}, \text{₦10,697.76})$. Mark this intersection point on your graph.

Description of the Graph:
You will see two straight lines originating from the y-axis.

• The Cost line starts at ₦10,000 on the y-axis and slopes upwards.
• The Revenue line starts at ₦0 (the origin) and slopes upwards more steeply than the cost line.
• The point where these two lines cross is the break-even point. To the left of this point, the cost line is above the revenue line, indicating a loss. To the right of this point, the revenue line is above the cost line, indicating a profit.